Local Lawmakers Reviewing Bailout Bill

Sen. Bob Casey and Rep. Tim Murphy talked with Channel 11 on Sunday about the tentative deal on a $700 billion economic bailout plan.

Casey said he was glad to see provisions were included about limiting "golden parachutes" for CEOs of failing companies.

Casey told Channel 11 he wanted to see "a limitation on executive compensation so you don't have CEOs getting severance while they're participating or after they've participated in this program."

Congressman Murphy, a Republican from the 18th District, expressed some serious concerns about items that aren't in the final bill. House Republicans only received the bill Sunday night to begin to look over.

Murphy told Channel 11 that he has received hundreds of calls from constituents who are against the idea of the bailout.

He said, "The question is are we going to protect people's nest eggs short term or long term, and who's left holding the bag in this. There's a lot left to do, so I'll be reviewing this bill and seeing what we like and don't like."

Some of the key components of the bill include:

EXECUTIVE PAY: Restrictions would be imposed on the compensation received by executives whose companies sell some of their bad assets through the government's purchase program. There would be tax restrictions on executive pay over $500,000 and limits on so-called "golden parachutes" for executives who leave the companies getting government bailouts.

OVERSIGHT: The Treasury will be required to provide details of its purchases of bad assets within two days of the transaction. Oversight boards would be created, including one with members selected by Democratic and Republican leaders in the House and Senate and one that will include top government officials.

TAXPAYER PROTECTION: Taxpayers would be given ownership stakes in companies whose bad assets are purchased and after five years, if the government is facing a loss in the program, then the president will be required to submit a plan on how to recoup a portion of the losses from the companies that participated in the program.

A proposal floated that did not make the final version of the bill:

HELP FOR TROUBLED HOMEOWNERS: They failed in an effort to give judges the power to modify mortgage terms for people who have filed for bankruptcy and Democrats were unable to get approval for part of any profits the government might receive to go to help people facing mortgage defaults.

To read the bill in its entirety, click on the link below:

Bailout Bill